Substantial earnings contributions from two successful real estate transactions at Lloyd Fonds AG
- Sale of an office building in Eindhoven as well as a hotel in Hamburg and Sylt from existing investment funds underscoring Lloyd Fonds AG’s real estate expertise
- Pre-tax return of between 10 and 11.5 percent for fund investors
- Lloyd Fonds AG’s existing business in closed-end investment funds supports the reorientation towards an active asset manager
Hamburg, January 10th, 2019. The Lloyd Fonds AG (Deutsche Börse Scale, ISIN DE000A12UP29) ended the 2018 financial year with two successful real estate transactions. The listed asset manager sold one office building in Eindhoven from the “Holland Eindhoven” real estate fund and two hotel properties in Hamburg and Sylt from the “Businesshotel Hamburg/Ferienhotel Sylt” fund to institutional investors.
Sales underscoring Lloyd Fonds AG’s real estate expertise
Lloyd Fonds AG issued the “Holland Eindhoven” real estate fund in 2009. The fund owns an office building in central Eindhoven (Netherlands), leased to a health insurance company under a long-term contract.
In addition, Lloyd Fonds AG continued its successful series of hotel transactions with the sale of two hotel buildings “Businesshotel Hamburg/Ferienhotel Sylt” real estate fund. The real estate fund, issued in 2007 invested in a 4-star hotel in the center of Hamburg, operated by the Lindner Hotel Group as well as the hotel “Dorfhotel Sylt”, a 4-star apartment/hotel property, operated by TUI AG. Already in 2016 and 2017 hotel properties were able to be sold to the Motel One-Group with great success for the fund investors and the Lloyd Fonds AG. Over the last three years, Lloyd Fonds AG’s real estate team has completed real estate transactions and arrangements worth a total value of around EUR 345 million.
Above-average returns for investors
With the successful sale of the office building in Eindhoven together with the regular payouts already made to date or still outstanding of a total of 54 percent, investors will be receiving a capital flowback of around 190 percent before tax. In terms of the fund’s duration of just under nine years, this results into an annual return of approximately 10 percent.
The investors in the “Businesshotel Hamburg/Ferienhotel Sylt” real estate fund have also achieved very good results from the sale of the two hotels. Together with the regular payouts already made or still outstanding of a total of around 60.5 percent to date, investors will be receiving a capital flowback of roughly 227.4 percent before tax. In terms of the fund’s duration of just under eleven years, this results into an annual return of over 11 percent.
“The sales price achieved by the two hotels is an impressive example of our professional asset management and our excellent contacts that we have with institutional investors. In this way, we have been able to achieve very good results for our fund investors,” says Jochen Sturtzkopf, CSO of Lloyd Fonds AG.
Substantial earnings contributions for the Lloyd Fonds AG; further earnings contributions expected in the medium term from the management of the existing portfolio
Under the profit-sharing arrangements with the funds, Lloyd Fonds AG is also benefiting from the real estate transactions. Klaus M. Pinter, CFO of Lloyd Fonds AG explains: “The Lloyd Fonds AG indirectly benefits from the results of the investment funds via commission and profit-sharing arrangements. We are making a substantial earnings contribution from these sales, most of which will be generated in the 2019 financial year. This is a win-win situation for our fund investors and our company.”
Together with its partners, Lloyd Fonds AG manages a portfolio of ship and real estate funds as well as funds in other asset classes. Lloyd Fonds AG expects to generate further substantial contributions to earnings from service fees and profit-sharing arrangements from the management of this portfolio in 2019 and 2020. The real estate transactions impressively underline Lloyd Fonds AG’s long-standing experience in managing this existing portfolio, which will continue to be of part of the active asset manager’s business model and the strategy 2019+.